New Delhi, August 20 (HS): Shares of Mahendra Realtors & Infrastructure Ltd, engaged in construction, structural repair, building rehabilitation, and retrofitting, made a dismal debut on the stock market today, leaving IPO investors deeply disappointed.

Despite being issued at ₹85 per share, the stock listed at a steep 20% discount at ₹68 on NSE’s SME platform. The weak opening triggered heavy selling pressure, dragging the stock further down to its lower circuit at ₹64.60, translating into a 24% loss for investors on day one itself.

Mahendra Realtors had launched its ₹49.45 crore IPO between August 12–14, which was met with strong demand and oversubscribed 25.15 times overall. The Qualified Institutional Buyers’ (QIB) quota was booked 43.57 times, Non-Institutional Investors (NII) 27.02 times, and Retail Investors 25.59 times. The IPO comprised a fresh issue worth ₹40.18 crore along with an Offer-for-Sale (OFS) of 10,91,200 shares of ₹10 face value. Funds raised were earmarked for working capital requirements and general corporate purposes.

On the financial front, the company showcased impressive growth in its prospectus. Net profit climbed from ₹4.04 crore in FY 2022-23 to ₹11.58 crore in FY 2023-24, and further jumped to ₹14.87 crore in FY 2024-25. Revenue too surged at over 39% compounded annual growth rate (CAGR) to reach ₹128.69 crore. Debt levels, however, showed volatility – declining from ₹43.64 crore in FY23 to ₹16.13 crore in FY24, but rising again to ₹27.81 crore in FY25.

Despite robust fundamentals and enthusiastic IPO subscription, the stock’s weak debut has raised concerns over valuation and near-term investor sentiment.

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Hindusthan Samachar / Jun Sarkar